Originally posted by adityancs
Weight and volume of wire rope may be a trouble factor in transportation. We have to wait and watch the pricing policy of Usha Martin. |
Some facts about Usha Martin.
Market cap around 2500 crores, debt around 1671 crore
FY 10 EPS around 5.5 per share.
FY 11 E 10-11 and FY 12E 13-15
Company has just finished its 2100 crore expansion programme which will lead to increased volume of crude steel production. The company is now able to access its full requirement of iron ore and coal from its own captive resources and this will reduce the dependence on costly raw materials leading to increased margins along with higher volumes.
Earlier the company used to depend on wire ropes for its growth but in the next two three years, the growth in sales and profits expected to be from commodity steel products like rods and rolled products. Wire division sales are expected to grow by around 15% going forward. Wire division main customers is oil and gas industry which again is expected to witness robust growth going forward and hence I feel this 15% expected growth might be surpassed.